Tesla calls for stricter US fuel economy standards
Tesla’s Diarmuid O’Connell argues most carmakers are only meeting the minimum on efficiency, urging US regulators to toughen upcoming fuel economy rules.
Tesla’s vice president of business development, Diarmuid O’Connell, has called on US regulators to impose even tougher fuel economy standards, arguing that most rival manufacturers are only doing the bare minimum to comply with existing rules. O’Connell made the comments at an auto industry conference in northern Michigan, where he singled out Tesla, Nissan and BMW as the only brands making meaningful progress on electrification and efficiency.
Under current US regulations, carmakers must reach a fleet average fuel economy of 54.5 miles per gallon by 2025. This figure is scheduled for a mid-term review in 2017, giving manufacturers and policymakers an opportunity to reassess the targets. O’Connell argued that if the original trajectory of fuel economy improvements set after the 1973 oil crisis had been maintained, the average car would already be achieving 75 mpg today.
Tesla’s position and industry response
Tesla stands to benefit from stricter rules. As a pure electric vehicle manufacturer, its Model S and upcoming Model X are not subject to the same efficiency hurdles as petrol or hybrid vehicles. O’Connell’s comments reflect Tesla’s view that tightening regulations would accelerate the shift to electric vehicles and penalise manufacturers relying on incremental improvements to traditional engines.
O’Connell criticised most major brands for “minimum compliance, lowest common-denominator behaviour”, claiming this approach is reflected in their product ranges. He argued that the current period of cheap petrol is likely temporary and that external costs such as climate change and dependence on foreign oil are not properly reflected in the market. As a result, he believes regulators should push harder for genuine gains in efficiency, not just compliance with the status quo.
Implications for other manufacturers
Tougher fuel economy rules would increase pressure on manufacturers relying on petrol and diesel engines. Some, such as Fiat Chrysler, have already resorted to buying emissions credits from rivals to meet targets (see Fiat Chrysler Buys 8.2 Million Emissions Credits from Rivals). Others are investing in new powertrains or lightweighting, but progress across the sector has been uneven. As global fuel economy improvements continue to lag behind climate goals, the debate over whether to strengthen, maintain or relax US standards will be closely watched by the industry (see Global fuel economy progress falling short of climate goals).
